On September 27th Accenture (ACN) reported its EPS after the close of trading. We saw that the company was able to overcome a weak macroeconomic environment during the Q4 2012 period and it recorded positive revenue growth of 2% in U.S. dollars and 9% in constant currency versus the prior year’s comparable period. This was driven by continued strength in its outsourcing business and stable results in its consulting business. With the exception of weakness in its Financial Services Operating Group, Accenture saw strong operating income growth in its industry operating groups. We previously entered into a long position earlier in the month and the results that Accenture posted have validated our conviction in the company.

Corporate Highlights

Accenture saw its Q4 revenue increase by 2% year-over-year in the fourth quarter in reported U.S. dollar terms. We were cognizant of the fact that the strong U.S. dollar has been negatively impacting the results of multinational corporations and while Accenture was not immune to this, we were pleased that the company saw its revenue grow by 9% in local constant currency terms in the quarter. All three of its geographic regions saw at least 8% revenue growth in constant currency terms for the quarter. EPS declined by 3.3% due to a $57.5M tax charge due to the change in the geographic mix of income. For FY 2012 the company generated $27.9B in revenue versus $25.5B in 2011. Negative currency headwinds resulted in a 2% negative impact to the company’s 2012 revenue. EPS for FY 2012 grew by 13.3% due to a 12% increase in net income and a reduction in shares outstanding.

Business Segment Overview

Accenture’s Consulting Division’s revenues were $3.74B and declined by 4% in U.S. dollars and increased by 2% in constant currency terms in Q4 2012 versus Q4 2011. The Consulting Division generated $4.3B in new bookings for the quarter and this represented 46% of the company’s new bookings. For the year, the division saw $15.6B in revenues, an increase of 4% in U.S. dollars and 6% in constant currency terms versus 2011. New bookings were $16.6B for the year and the division saw soft financial performance in Q3 and Q4 2012 due to the challenging economic environment.

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